What would you do?

Ash_Pole

Onamatappear said:

Hello,
I am on the cusp of turning 52.
Had a few ups and downs financially and lost a lot of money for various reasons. 
Despite these setbacks I have a chance to turn this around.
Working very hard and now making some good money.
I am in the fortunate position of having minimal overheads 
so i survive on my yearly taxable allowance and some small savings.
All profit from my business goes into my private pension. This comes with the obvious benefit of eliminating tax but raises concerns about sensible but profitable investing.
I have around £150k, in three years that should be approx. £380k-400k which would be almost enough for my overseas retirement. I plan a budget of £1600 a month in my retirement.
I currently have my money invested in Vanguard, mostly the S&P 500.
Historically its reliable despite the recent upheaval.
Each year i can increase my investment by approx £70k. Just had a thought, something is telling me there is a 40k maximum for what im doing but i will check.
So if all goes to plan around 56 i will stop slogging my guts out. 
The masterplan is with around 330k in my PP and around 70k in available money I can make this work without reducing the gross, living off the investment profit.
I can take the £12570 each year tax free from my pension will top it up with my savings.
Also at 57 i can take 25% out which will be around 85k.
Can i reinvest that in a ISA which the government will top up?
I know diversification is key when investing but with the S&P 500 being a big mix of companies am i better putting everything in that fund?
I have considered property but I am no expert.
Let me know what you think because at my age I cannot screw this up. 
Thanks for your time

Interested in where you are planning to retire overseas, been thinking of doing this myself but really got no idea where

HedgehogRulez

Hull is beautiful this time of year.

DREKLY

HedgehogRulez said:

Hull is beautiful this time of year.

A Comedian.  why not try Russia.   🙃

jimjames

Onamatappear said:

I am on the cusp of turning 52. So if all goes to plan around 56 i will stop slogging my guts out. 
Also at 57 i can take 25% out which will be around 85k.
Can i reinvest that in a ISA ?

The annual ISA allowance is £20k so it would take you 5 years to get all the £85k into an ISA. Problem is that age 56 you are suggesting to retire overseas so the ISA wrapper will no longer be available to you at the time you get the money age 57. 

wmb194

jimjames said:

Onamatappear said:

I am on the cusp of turning 52. So if all goes to plan around 56 i will stop slogging my guts out. 
Also at 57 i can take 25% out which will be around 85k.
Can i reinvest that in a ISA ?

The annual ISA allowance is £20k so it would take you 5 years to get all the £85k into an ISA. Problem is that age 56 you are suggesting to retire overseas so the ISA wrapper will no longer be available to you at the time you get the money age 57. 

Plus overseas jurisdictions won't recognise Isas' tax free status anyway. Someone correct me but I don't think any do. 

Rudyson

DREKLY said:

HedgehogRulez said:

Hull is beautiful this time of year.

A Comedian.  why not try Russia.   🙃

Way too hot for me, it's over 30 degrees in Siberia (31 in Novosibirsk now. 7pm local time)